Bankia has ended its contractual relationship with Moody’s, the Spanish bank announced on Thursday, after the rating agency cut its cédulas hipotecarias to junk on 2 July.

The mortgage and public sector covered bonds were downgraded from Baa1 to Ba1 on the same day that the bank was cut from Ba2 to B1, on negative outlook. Its parent, Banco Financiero de Ahorros was cut from B2 to Caa1 and has also ended its relationship with Moody’s.

“From now on, all information or ratings of the company issued by Moody’s Investor Services will be based on public information,” said Bankia.

It will continue to be rated by Fitch and Standard & Poor’s.

Commenting on the termination of Bankia’s relationship with Moody’s, Bank of America Merrill Lynch analysts noted that there had been a sell-off in the Spanish bank’s covered bonds after they were cut to junk.

“Thus this is positive news for Bankia’s covered bonds,” they said.